FARMERS and dairy producers are to be consulted over the possible introduction of new legislation to make milk contracts fairer.
A 12-week consultation has been launched across the UK to tackle issues in the dairy supply chain.
The UK Government, working with the devolved administrations in Wales, Scotland and Northern Ireland, says it wants to stamp out any unfair practices in the sector.
Evidence gathered by the Groceries Code Adjudicator in 2016 highlighted how unfair practices have persisted in the dairy industry, says DEFRA,
It suggests that milk buyers have had the power to set and modify the milk price in a contract, often with little notification, leading to uncertainty and pricing that can be unfair to dairy farming businesses.
Proposals to tackle the problem include an option to introduce a mandatory pricing mechanism within all contracts between dairy farmers and processors.
This would ensure the price paid for milk produced by the farmer is formally agreed within the contract, and that contract negotiations take place in a clear and transparent way.
Farming Minister Victoria Prentis said: ’It is absolutely vital that our dairy farmers are paid fairly for their high quality produce and I am committed to cracking down on any unfair practices within the UK dairy industry.
’I welcome all views to this consultation to determine how best we can guarantee fairness across the supply chain. This will help the industry continue its vital role in feeding the nation and ensure our dairy farmers can continue to be competitive in the future.’